EMEA Backgrounder 2004.

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MOTOROLA IN

EUROPE,

MIDDLE EAST

AND AFRICA

EMEA MILESTONES

1967 Motorola builds its first semiconductor plant in Europe in

Toulouse, France

1995 Motorola opens its Centre of

Excellence laboratory for motor control in the Czech Republic

OVERVIEW

Motorola is a global leader in wireless, automotive and broadband communications technologies, fundamentally changing the way people communicate all over the world.

Working with leaders and visionaries from all markets, Motorola integrates communication capabilities, not just into communications devices and networks, but into everything that touches the person, home, automobile and work team.

In 2003, Motorola worldwide celebrated 75 years at the forefront of technology and, building on its heritage of technological firsts, Motorola is committed to continue to drive the innovation that invents tomorrow today.

Regarded as a company founded on integrity we are committed to meeting our promises to our customers, our partners and the communities in which we operate.

Motorola helps to make things smarter, safer, simpler, synchronized and fun . It’s our brand promise -

Intelligence Everywhere™.

MOTOROLA IN EMEA

Motorola has been operating in the EMEA region for nearly 60 years creating the products and technologies that bring power to the person anywhere and at any time, at home, at work or on the move.

SCOPE

There are approximately 17,000 Motorola employees working in 53 countries throughout

EMEA, including:

Austria, Baltic States, Belarus, Belgium, Czech

Republic, Denmark, Egypt, Finland, France,

Germany, Greece, Hungary, Ireland, Israel, Italy,

Kazakhstan, Morocco, Netherlands, Norway,

Poland, Portugal, Romania, Russia, Saudi Arabia,

Slovakia, Slovenia, South Africa, Spain, Sweden,

Switzerland, Turkey, UAE, UK, Ukraine and

Uzbekistan.

MANUFACTURING

Motorola has 9 manufacturing facilities across

EMEA:

Berlin and Flensburg in Germany, Angers, Crolles and Toulouse in France, Dunfermline, East Kilbride and Swindon in the UK and Arad in Israel.

RESEARCH & DEVELOPMENT

Motorola has 22 R&D centres throughout EMEA, including:

Loughborough in the UK, Copenhagen and Nibe in

Denmark, Cork in Ireland, Herzeliya and Tel Aviv in

Israel, Krakow in Poland, Moscow & St. Petersburg in Russia, Roznov in Czech Republic, Madrid in

Spain, Munich in Germany, Paris and Toulouse in

France, Turin in Italy and Bucharest in Romania.

EMEA MILESTONES

1991 Motorola opens its mobile handset manufacturing site in

Flensburg, Germany

PERSONAL COMMUNICATIONS SECTOR

2003 Motorola celebrates the 20 th anniversary of the first mobile call and produces the first generation

UMTS phone.

HELLOMOTO

The Personal Communications Sector (PCS) delivers integrated solutions that enable consumers to carry voice, data or video communications anywhere they go, anytime. Motorola designs and manufactures the largest portfolio of mobile devices in the world.

Commitment to innovation

Twenty years on from launching the first handheld communications device for mass consumer use, Motorola continues to show its market leading innovation, quick time to market and technology leadership. Motorola continues to stay at the forefront of technology with continued excellence in 3G handsets, with the recent launches of the A835, A920 and A925. This continues

Motor ola’s long history of firsts to market, including the launch of dualband, triband and quadband handsets, the first flip phone and the smallest phone – the V3688.

Motorola has further pushed the limits with the introduction of the MPx200 – the first in a series of devices working with Microsoft Windows Mobile software to combine the power of the desktop with the always on convenience and portability of the mobile phone.

Continued development

Motorola continues to lead and develop 2.5G phones with a number of handsets to be delivered to the region over the next few months. Today mobile communications is all about sharing, creating and entertaining with voice, text, images, music and videos. Motorola provides a holistic experience encompassing the use of sound and lighting to stimulate all human senses.

The Motorola V600 is a stylish handset utilising the classic Motorola clamshell form factor. The new Motorola

V80 defies convention with its sleek black look, rotating cover, compact design and one touch embedded VGA camera that can take pictures in landscape format as well as portrait. Motorola pushes design innovation forward with advanced features such as Bluetooth® integrated camera and video playback combined with industry firsts such as quad band roaming.

MTV and Motorola Rock

Motorola’s commitment to being a leading innovator in the wireless market makes them a compelling partner to deliver fuller experiences. Motorola continues to develop products working with key partners to provide an environment that radically accelerates the way people use and view their mobile phone — creating a mobile entertainment experience for consumers to text, talk, rock, mix and more. MTV Europe has also teamed up with Motorola to run cutting-edge pan-European music and trends show - MTV Mash. The shows include dedicated ‘mashes’ made specifically for MTV Networks

Europe by some of the world’s most experimental music producers.

No More Wires!

Motorola makes it a huge priority to provide existing and new customers with the very best all-round mobile communications package available without wires. Just one of the many products to be released over 2004 to enable this connectivity is Motorola’s Wireless Headset

HS820 - designed to give consumers the convenience a nd intelligence of Bluetooth® technology at an affordable cost allowing incoming and outgoing calls up-to 10 meters away from the Motorola mobile phone.

Using Bluetooth in conjunction with Motorola’s mobile office software, PhoneTools, enables busy professionals to easily connect to and communicate via the Internet from anywhere and at any time by connecting their

Motorola mobile phone to their laptop or PC.

Fashionable

Motorola partners with key fashion designers to integrate the technology advances with the latest trend. This provides consumers with the most innovative and stylish way to communicate. Leading designers such as Oki-ni,

Paul Smith, Swarovski and Warren Noronha collaborate with Motorola to produce limited edition versions of handsets such as the T720i and V600 to create unique fresh looks to Motorola handsets.

EMEA MILESTONES

2002 Motorola offers commercial

GPRS CS-3 and CS-4 capability

(ETSI standard data rates up to

74Kbps)

2004 Motorola wins UMTS contract with Optimus in Portugal

GLOBAL TELECOM SOLUTIONS SECTOR

Motorola’s Global Telecom Solutions Sector (GTSS) is a key provid er of CDMA, GSM, GPRS, EDGE, UMTS and iDEN® wireless communication technologies used by operators and consumers around the world. With decades of experience in wireless telecommunications infrastructure, network services and systems integration, Motorola understands the business needs of its wireless carrier customers. The company is committed to their long-term success and to helping them to get the most out of their communications investment.

Motorola delivers a flexible portfolio of wireless solutions to help customers implement their commercial strategies and manage the uncertainty and risk of today’s telecommunications market and the migration to new generation technologies. These solutions provide:

Faster time to revenue through enabling platforms, management architectures and new access technologies.

These are commercialised solutions that offer compelling revenue-generating applications and services.

Lower cost of ownership with scaleable architectures and solutions which allow cost effective management of multiple access technologies. An evolution path of converged networks and flexible migration paths also maximises operators’ investments.

Higher quality of service made possible through hardware independent services and tools to improve both network performance and end user experiences.

Innovative Solutions

Motorola is bringing new and innovative solutions to market for operator’s service strategies today and tomorrow.

3G & UMTS

Motorola’s UMTS solutions and services build on the company’s heritage in CDMA. As the only major vendor with more than 10 years proven experience in delivering GSM and CDMA network and handset solutions, Motorola is uniquely qualified to help customers migrate networks through to 3G, whether in UMTS or

CDMA2000 1X.

Motorola’s UMTS system is a complete and scalable end-to-end solution, including circuit-and packet core, which allows customers to meet market demand both at initial deployment and as the number of subscribers grows.

UMTS & beyond

While the first implementations of UMTS are beginning to take place around the world, Motorola has already begun to develop the enhanced version of UMTS that will deliver mobile broadband, peak data rates of up to 10Mbs/sec and spectral efficiency improvements of up to 3X. This simple and costeffective enhancement to the UMTS system is called High-

Speed Downlink Packet Access (HSDPA).

Softswitch

Building on its heritage of technical excellence and reputation for innovation, Motorola has added an IP softswitch to its product portfolio. This leading-edge technology, with its potential to impact the wireless industry, demonstrates

Motorola’s continued leadership in wireless networking.

Push-to-Talk over Cellular (PoC)

Motorola is the industry leader in PTT and has aligned with its customers for more than 65 years to provide PTT systems including iDEN to meet specific user needs. Today, the company is delivering a complete PoC solution including handset/client and server.

Motorola GAMA

Motorola’s Global Application Management Architecture is a service delivery platform that enables rapid and cost effective development and deployment of ARPU-enhancing data service applications and provides a comprehensive services management platform that integrates with existing deployed enablers, content delivery platforms, and back-end systems.

Motorola’s Lifecycle Services

Motorola’s Lifecycle Services portfolio consists of leading edge wireless consultancy services including its hardwareindependent optimisation expertise to address every stage of an operator’s growth.

EMEA MILESTONES

2000 Motorola secures the first

TETRA contract awarded in South

Africa

COMMERCIAL, GOVERNMENT AND

INDUSTRIAL SOLUTIONS SECTOR

2003 Motorola selected to supply secure TETRA public safety radio system for the 2004 Athens

Olympics

Motorola is revolutionising the way business and

Today Motorola in Europe is at the forefront of the government agencies from around the world communicate and share information. Motorola ’s

Commercial, Government and Industrial Solutions

Sector (CGISS) provides radio network solutions, radio products, parts and services and satellite solutions to organisations across the world.

Motorola is a leading provider of end-to-end integrated radio communications and information solutions, with more than 60 years of experience in meeting the mission-critical wireless communication requirements of public safety agencies and commercial enterprises world-wide.

Motorola’s extensive safety and security portfolio latest developments in digital radio standards and is a founder member of the TETRA Association (MoU).

Motorola has signed over 117 contracts for its

TETRA portfolio in more than 44 countries covering:

Portable and mobile wireless

Systems, radios and accessories

Network security and encryption products

Command, control, communications, computing and intelligence systems

Airport operations and asset management systems includes:

Two-way radio mobile products

Infrastructure with encrypted security capabilities

Command and control equipment

Computer-aided dispatch emergency 999/112 systems

The portfolio is further enhanced with:

Automated records management systems

Identification and tracking solutions

Palm/fingerprint and photo-imaging systems

Physical security and monitoring solutions

Remote monitoring and diagnostics

Comprehensive information management capabilities for criminal justice and civil needs

Motorola has more experience and expertise in the radio transmission industry than any other company and supports all user driven open standards including APCO25 and TETRA (TErrestrial Trunked

RAdio).

Motorola TETRA: www.motorola.com/tetra

TETRA Association (MoU):

In 2001 the State of Vatican City adopted

TETRA communications system. www.tetramou.com

Motorola’s

EMEA MILESTONES

2003 Motorola joins Philips and

STMicroelectronics to create the

Crolles2 Alliance to develop advanced CMOS semiconductor technology, and to manufacture silicon chips on 300mm wafers

SEMICONDUCTOR PRODUCTS SECTOR The Transportation & Standard Products Group(

TSPG drives the sector’s distinction as the world’s

Motorola is the world’s number 1 producer of No. 1 semiconductor supplier to global automotive embedded processors.

Semiconductor Products Sector (SPS) creates system-on-chip technologies for wireless communications, networking and automotive applications and creates standard products that offer embedded processing and connectivity capabilities for millions of devices throughout the world.

Motorola’s semiconductor businesses include:

The Networking & Computing Systems Group

NCSG leads the industry in providing communications solutions for wireless and wireline networking infrastructures. Motorola ’s broad portfolio of Smart Networks solutions enables customers to create intelligent networks engineered to evolve to meet future demands. We are the marketshare leader with our PowerQUICC™ integrated communications processors.

The Wireless & Mobile Systems Group

WMSG drives leadership in the high-volume manufacturers. TSPG also focuses on the highvolume consumer, industrial and PC peripheral markets. The business extends Motorola ’s leadership and mass-market success in microcontrollers, digital signal processors, microprocessors, sensors and analogue products.

These standard product applications present a huge opportunity to drive profitable growth. By extending the reach and life of Motorola ’s technology and manufacturing assets, we can complement the relatively short life cycles of communications markets and provide a solid base for the sector.

Technology & Manufacturing

T&M implements a comprehensive process technology pipeline —from R&D through delivery to customers. Leadership technologies include:

 Silicon germanium carbon (SiGe:C),

 SMARTMOS, gallium arsenide (GaAs),

 Bipolar complementary metal oxide

 semiconductor (BiCMOS)

Embedded memories, including magnetoresistive random access memory

(MRAM) communications client space. We are capitalising on the convergence of digital consumer and communications technologies (including connectivity, audio, video, security, imaging, graphics and radio frequency embedded solutions) in the growing portfolio of wireless and broadband consumer communications. A key initiative is providing global original equipment manufacturers

(OEMs) and original design manufacturers (ODMs) with silicon-to-software 2G (generation), 2.5G and

3G Innovative Convergence platforms used to create mobile wireless devices.

We are pursuing advanced CMOS process technology down to the 32-nanometer node and other innovations in a venture with semiconductor manufacturers STMicroelectronics and Philips, with

Taiwan-based TSMC as a foundry participant.

These businesses complement the rapid life cycles of the communications markets, by extending the effective reach and life of Motorola technology and manufacturing assets to serve a diversified customer base and provide a solid financial base.

EMEA MILESTONES

1996

Motorola’s Centre of

Excellence facility in Spain opens developing UMTS technology

2003 Interpol honours Motorola for its service to the international law enforcement community

BROADBAND COMMUNICATIONS SECTOR

Motorola ’s Broadband Communications Sector

(BCS) provides a scalable, integrated end-to-end system for the delivery of broadband services that keeps consumers informed, entertained and connected. Its technology enables network operators and retailers

INTEGRATED ELECTRONIC SYSTEMS

Motorola’s Integrated Electronic Systems (IESS)

Sector operates in the growing market for integrated electronic solutions, focusing in the automotive and telecommunications industries. Motorola IESS is subdivided into the business areas of vehicle electronics, telematics, computer systems and energy systems.

Motorola IESS businesses include:

Automotive Communications and Electronic

Systems Group

ACES develops and produces electronic control units, electronic systems for automotive manufacturers and telematics solutions for the

European market.

The business group operates in five strategic business fields: telematics, powertrains, chassis electronic, body electronics and sensor technology.

Its electronic developments enable numerous solutions to be created for improved safety, convenience and entertainment. Motorola is a leading supplier to the automotive industry throughout the world and is developing new telematics solutions with many automotive manufacturers. Currently BMW, DaimlerChrysler,

Ford, General Motors, Renault and VW/Audi are some of the leading brands working with Motorola to create and execute on new business opportunities by providing innovative products and services to the home.

Customer-responsive design and manufacturing expertise further contribute to the company’s position as the world's leading supplier of cable modems and digital set-tops.

Motorola Computer Group

MCG makes it easier for original equipment manufacturers to create better products faster and more cost-effectively. It is a trusted supplier of industry standard-based embedded systems and value-added services that deliver rich computing and communications experiences.

We deliver the right products and services at the right time through highly efficient operations management and a focus on standards-based technologies. Our evolutionary product strategy enables equipment manufacturers to leverage changes in complex embedded technology with minimum risk. At the same time we are driving industry ecosystems and re-engineering the value chain to deliver real time-to-market advantage and superior customer value.

Energy Systems Group

ESG is one of the leading suppliers of batteries and charging systems for cordless communication products, notebooks, personal digital assistants

(PDAs) and scanners.

MOTOROLA and the Stylized M Logo are registered in the

U.S. Patent & Trademark Office. All other product or service names are the property of their respective owners.

© Motorola, Inc. 2004.

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